N. Provisions and Contingent Liabilities
Provisions

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. The expense relating to a
provision is presented in the statement of profit and loss.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding the
obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

Warranties

The estimated liability for product warranties is recorded
when products are sold / project is completed. These
estimates are established using historical information on
the nature, frequency and average cost of warranty claims,
Management estimates for possible future incidence
based on corrective actions on product failures. The
timing of outflows will vary as and when warranty claims
arise being typically up to five years.

Contingent Liabilities

Contingent liabilities exist when there is a possible
obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not
wholly within the control of the Company, or a present
obligation that arises from past events where it is either
not probable that an outflow of resources will be required
or the amount cannot be reliably estimated. Contingent
liabilities are appropriately disclosed unless the possibility
of an outflow of resources embodying economic benefits
is remote.

Environment Liabilities

E-Waste (Management) Rules 2022, as amended,
requires the Company to complete the Extended
Producer Responsibility targets (EPR) measured based
on sales made in the preceding 10^th year. Accordingly,
the obligation event for e-Waste obligation arises only
if Company participate in the markets in such years and
based on the Company participation in markets in such
years, liability for e-waste obligation is recognised.

O. Financial Instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial Assets

• Initial Recognition and Measurement

Financial assets are classified, at initial recognition,
and subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset's

contractual cash flow characteristics and the
Company's business model for managing them. With
the exception of trade receivables that do not contain
a significant financing component or for which the
Company has applied the practical expedient, the
Company initially measures a financial asset at its
fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs.
Trade receivables that do not contain a significant
financing component or for which the Company
has applied the practical expedient are measured
at the transaction price determined under Ind AS
115. Refer to the accounting policies in section (B)
Revenue.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are 'solely
payments of principal and interest (SPPI)' on the
principal amount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows
that are not SPPI are classified and measured at
fair value through profit or loss, irrespective of the
business model.

The Company's business model for managing financial
assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both. Financial assets
classified and measured at amortised cost are held within a
business model with the objective to hold financial assets in
order to collect contractual cash flows while financial assets
classified and measured at fair value through OCI are held
within a business model with the objective of both holding
to collect contractual cash flows and selling.

• Subsequent Measurement

For purposes of subsequent measurement, financial
assets are classified in four categories:

• Financial assets at amortised cost (debt
instruments)

• Financial assets at fair value through other
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt
instruments)

• Financial assets designated at fair value
through OCI with no recycling of cumulative
gains and losses upon derecognition (equity
instruments)

• Financial assets at fair value through profit or
loss

• Financial Assets at Amortised Cost (Debt
Instruments)

A 'financial asset' is measured at the amortised cost if
both the following conditions are met:

(a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

(b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method and are subject to
impairment as per the accounting policy applicable
to 'Impairment of financial assets.' Amortised cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is
included in other income in the profit or loss. The
losses arising from impairment are recognised in the
statement profit and loss. The Company's financial
assets at amortised cost includes trade receivables,
loans and other financial assets.

• Financial Assets at Fair Value Through Other
Comprehensive Income (FVTOCI) (Debt
Instruments)

A 'financial asset' is classified as at the FVTOCI if both
of the following criteria are met:

(a) The objective of the business model is
achieved both by collecting contractual cash
flows and selling the financial assets, and

(b) The asset's contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. For debt instruments,
at fair value through OCI, interest income, foreign
exchange revaluation and impairment losses or
reversals are recognised in the statement profit
and loss and computed in the same manner as for
financial assets measured at amortised cost. The
remaining fair value changes are recognised in
OCI. Upon derecognition, the cumulative fair value
changes recognised in OCI is reclassified from the
equity to profit or loss.

• Financial Assets at Fair Value Through Other
Comprehensive Income (FVTOCI) (Equity
Instruments)

Upon initial recognition, the Company can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under
Ind AS 32 'Financial Instruments: Presentation' for the
issuer and are not held for trading. The classification
is determined on an instrument-by-instrument
basis. Equity investment which are held for trading
are classified as at FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised
as other income in the statement of profit and loss
when the right of payment has been established,
except when the Company benefits from such
proceeds as a recovery of part of the cost of
the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at
fair value through OCI are not subject to impairment
assessment.

The Company elected to classify irrevocably its
listed and non-listed equity investments under this
category.

• Financial Assets at Fair Value Through Profit Or
Loss (FVTPL)

Financial assets in this category are those that are
held for trading and have been either designated
by management upon initial recognition or are
mandatorily required to be measured at fair value

under Ind AS 109 i.e. they do not meet the criteria
for classification as measured at amortised cost or
FVOCI. Management only designates an instrument
at FVTPL upon initial recognition, if the designation
eliminates, or significantly reduces, the inconsistent
treatment that would otherwise arise from
measuring the assets or liabilities or recognising
gains or losses on them on a different basis. Such
designation is determined on an instrument-by¬
instrument basis. For the Company, this category
includes derivative instruments, certain investments
in bonds and investment in mutual funds.

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

• Investments in Subsidiaries, Joint Ventures and
Associates

A subsidiary is an entity that is controlled by another
entity.

An associate is an entity over which the Company
has significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee but is not control or
joint control over those policies.

A joint venture is a type of joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the net assets of the joint
venture. Joint control is the contractually agreed
sharing of control of an arrangement, which exists
only when decisions about the relevant activities
require unanimous consent of the parties sharing
control.

Investment in subsidiaries, joint ventures and
associates are carried at cost less impairment in the
financial statements.

• Derecognition

A financial asset (or, where applicable, a part of
a financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e
removed from the Company's balance sheet) when:

• The rights to receive cash flows from the asset
have expired or

• The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received
cash flows in full without material delay
to a third party under a 'pass-through'
arrangement; and either (a) the Company
has transferred substantially all the risks and
rewards of the asset, or (b) the Company has
neither transferred nor retained substantially
all the risks and rewards of the asset, but has
transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates
if and to what extent it has retained the risks
and rewards of ownership. When it has neither
transferred nor retained substantially all of the
risks and rewards of the asset, nor transferred
control of the asset, the Company continues
to recognise the transferred asset to the extent
of the Company's continuing involvement.
In that case, the Company also recognises an
associated liability. The transferred asset and
the associated liability are measured on a basis
that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum
amount of consideration that the Company
could be required to repay.

• Impairment of Financial Assets

The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based
on the difference between the contractual cash
flows due in accordance with the contract and all
the cash flows that the Company expects to receive,
discounted at an approximation of the original
effective interest rate.

For all financial assets other than trade receivables,
expected credit losses are measured at an amount
equal to the 12-month expected credit loss (ECL)
unless there has been a significant increase in credit
risk from initial recognition in which case those
are measured at lifetime ECL. For trade receivables
and contract assets, the Company applies a
simplified approach in calculating ECLs. Therefore,
the Company does not track changes in credit risk,
but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Company
has established a provision matrix that is based
on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and
the economic environment.

Financial Liabilities

• Initial recognition, measurement and presentation

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss, loans and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company's financial liabilities include trade
payables, loans and borrowings including bank
overdrafts, other financial liabilities, financial
guarantee contracts and derivative financial
instruments.

• Subsequent Measurement

For purposes of subsequent measurement, financial
liabilities are classified in two categories:

• Financial liabilities at fair value through profit
or loss

• Financial liabilities at amortised cost (loans and
borrowings)

• Financial Liabilities at Fair Value Through Profit or
Loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in
the near term. This category also includes derivative
financial instruments entered into by the Company
that are not designated as hedging instruments in
hedge relationships as defined by Ind AS 109. Gains
or losses on liabilities held for trading are recognised
in the profit or loss.

Financial liabilities are designated upon initial
recognition as at fair value through profit or loss
only if the criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognised in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss
within equity. All other changes in fair value of such
liability are recognised in the statement of profit and
loss.

• Financial Liabilities at Amortised Cost

After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in the statement of profit and
loss when the liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
statement of profit and loss.

• Financial Guarantee Contracts

Financial guarantee contracts issued by the
Company are those contracts that require a payment
to be made to reimburse the holder for a loss it
incurs because the specified debtor fails to make a
payment when due in accordance with the terms of
a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted
for transaction costs that are directly attributable to
the issuance of the guarantee.

Subsequently, the liability is measured at the higher
of the amount of loss allowance determined as

per impairment requirements of Ind AS 109 and
the amount recognised less cumulative amount
of income recognised in accordance with the
principles of Ind AS 115.

• Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

• Offsetting of Financial Instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

P. Derivative Financial Instruments:

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its foreign
currency risks. Such derivative financial instruments are
initially recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative. Any
gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss.

Q. Impairment of Non-Financial Assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its value in use.

Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent
market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by
valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed
budgets and forecast calculations, which are prepared
separately for each of the Company's CGUs to which the
individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For
longer periods, a long-term growth rate is calculated and
applied to project future cash flows after the fifth year. To
estimate cash flow projections beyond periods covered
by the most recent budgets/forecasts, the Company
extrapolates cash flow projections in the budget using
a steady or declining growth rate for subsequent years,
unless an increasing rate can be justified. In any case,
this growth rate does not exceed the long-term average
growth rate for the products, industries, or country or
countries in which the Company operates, or for the
market in which the asset is used.

I mpairment losses including impairment on inventories
are recognised in the statement of profit and loss.

For assets, an assessment is made at each reporting
date to determine whether there is an indication that
previously recognised impairment losses no longer exist
or have decreased. If such indication exists, the Company
estimates the asset's or CGU's recoverable amount. A
previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to
determine the asset's recoverable amount since the last
impairment loss was recognised. The reversal is limited
so that the carrying amount of the asset does not exceed

its recoverable amount, nor exceed the carrying amount
that would have been determined, net of depreciation,
had no impairment loss been recognised for the asset in
prior years. Such reversal is recognised in the statement of
profit and loss.

For contract assets, the Company has applied the simplified
approach for recognition of impairment allowance as
provided in Ind AS 109 which requires the expected
lifetime losses from initial recognition of the contract
assets. Refer to accounting policies on impairment of
financial assets in section O 'Financial Instruments'.

R. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with
an original maturity of three months or less, that are
readily convertible to a known amount of cash and which
are subject to an insignificant risk of changes in value.

S. Earnings Per Share (EPS)

Basic EPS is calculated by dividing the profit or loss
attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding
during the period. Diluted EPS is determined by adjusting
the profit or loss attributable to equity shareholders
and the weighted average number of equity shares
outstanding for the effects of all dilutive potential equity
shares.

T. Segment Reporting

Segments are identified based on the manner in which
the chief operating decision-maker (CODM) decides
about the resource allocation and reviews performance.

Segment revenue, segment expenses, segment assets
and segment liabilities have been identified to segments
on the basis of their relationship to the operating activities
of the segment.

Inter-segment revenue is accounted on the basis of
transactions which are primarily determined based on
market / fair value factors. Revenue, expenses, assets and
liabilities which relate to the Company as a whole and are
not allocable to segments on reasonable basis have been
included under "unallocated revenue / expenses / assets/
liabilities".

Segment information has been presented in the
Consolidated Financial Statements as permitted by Ind AS
108 'Operating Segments.

U. Dividend

The Company recognises a liability to pay dividend to
equity shareholders when the distribution is authorised
and the distribution is no longer at the discretion of the
Company. As per the corporate laws in India, a distribution
is authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.

V. Borrowing Costs

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily
takes a substantial period of time to get ready for its
intended use or sale (qualifying assets) are capitalised as
part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing
costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.

W. Government Grants

Government grants are recognised where there is
reasonable assurance that the grant will be received,
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognised as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the expected
useful life of the related asset.

When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of
the underlying asset i.e. by equal annual instalments.

X. Events after the Reporting Period

I f the Company receives information after the reporting
period, but prior to the date of approved for issue, about
conditions that existed at the end of the reporting period,
it will assess whether the information affects the amounts

that it recognises in its separate financial statements.
The Company will adjust the amounts recognised in its
financial statements to reflect any adjusting events after
the reporting period and update the disclosures that
relate to those conditions in light of the new information.
For non-adjusting events after the reporting period, the
Company will not change the amounts recognised in its
separate financial statements but will disclose the nature
of the non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be
made, if applicable.

Y. Operating Cycle

The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents. A portion of the Company's activities (primarily
long-term project activities) have an operating cycle that
exceeds one year. Accordingly, assets and liabilities related
to these long-term contracts, which will not be realised/
paid within one year, have been classified as current. For all
other activities, the operating cycle is twelve months.

Z. Current Versus Non-Current Classification

The Company segregates assets and liabilities into
current and non-current categories for presentation in
the balance sheet after considering its normal operating
cycle and other criteria set out in Ind AS 1 'Presentation
of Financial Statements'. For this purpose, current assets
and liabilities include the current portion of non-current
assets and liabilities respectively. Deferred tax assets and
liabilities are always classified as non-current.

2A. RECENT ACCOUNTING PRONOUNCEMENTS ISSUED
BUT NOT YET EFFECTIVE

There are no standards that are notified and not yet
effective as on the date.

2B. CLIMATE - RELATED MATTER

The Company considers climate-related matters in
estimates and assumptions, where appropriate and based
on its overall assessment, believes that the climate-related
risks might not currently have a significant impact on the
Company. However, the Company will continue to closely
monitor relevant changes and developments, such as any
new climate-related legislation as and when they become
applicable

3. SIGNIFICANT ACCOUNTING, JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS

The preparation of the Company's Standalone financial
statements requires management to make judgements,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities,
and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of
assets or liabilities affected in future periods.

Judgements

In the process of applying the Company's accounting
policies, management has made the following
judgements, which have the most significant effect on
the amounts recognised in the standalone financial
statements

Other Long-term Employee Benefits - Long-term
Incentive Scheme

The Company provides long-term employee benefits
to its employees in the form of Long-Term Incentive
Scheme ('the Scheme'). The Scheme provides benefits
in the form of Incentive to be paid in cash to certain
category of employees upon achievement of certain
performance criteria, whereby employee renders services
as consideration for the incentive amount while continue
to remain in employment with the Company during the
tenor of the Scheme. The Company has considered that
it will achieve the performance criteria as defined in the
Scheme, accordingly the liability towards Long-Term
Incentive Scheme is determined using the Project Unit
Cost Method, with actuarial valuation being carried out at
the end of the reporting period.

Estimates and Assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date,
that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, are described below. The Company
based its assumptions and estimates on parameters
available when the financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market

changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in the
assumptions when they occur.

The following are the key assumptions concerning the
future, and other key sources of estimation uncertainty at
the reporting date, that have a significant risk of causing a
material adjustment to the carrying amount of assets and
liabilities within the next financial year:

Cost to Complete on Construction Contracts

Management estimates the costs to complete for each
project for the purpose of revenue recognition and
recognition of anticipated losses on projects, if any. In the
process of calculating the cost to complete, Management
conducts regular and systematic reviews of actual results
and future projections with comparison against budget.
This process requires monitoring controls including
financial and operational controls and identifying
major risks facing the Company and developing and
implementing initiatives to manage those risks. The
Company's Management is confident that the costs to
complete the project are fairly estimated.

Percentage of Completion on Construction Contracts

Management's estimate of the percentage of completion
on each project for the purpose of revenue recognition is
through conducting some weight analysis to assess the
actual quantity of the work for each activity performed
during the reporting period and estimate any future
costs for comparison against the initial project budget.
This process requires monitoring of financial and
operational controls. Management is of the opinion that
the percentage of completion of the projects is fairly
estimated.

As required by Ind AS 115, in applying the percentage
of completion on its long-term projects, the Company
is required to recognise any anticipated losses on it
contracts.

Impairment of Financial Assets and Contract Assets

The Company's Management reviews periodically items
classified as receivables and contract assets to assess
whether a provision for impairment should be recorded
in the statement of profit and loss. Management
estimates the amount and timing of future cash flows

when determining the level of provisions required. Such
estimates are necessarily based on assumptions about
several factors involving varying degrees of judgement
and uncertainty. Details of impairment provision on
contract assets and trade receivable are given in Note 14
and Note 15.

The Company reviews its carrying value of investments
annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than it's
carrying amount, the impairment loss is accounted for.

Fair Value Measurement of Financial Instruments

Some of the Company's assets are measured at fair value for
financial reporting purposes. The Management determines
the appropriate valuation techniques and inputs for fair
value measurements. In estimating the fair value of an
asset, the Company uses market-observable data to the
extent it is available. Where Level 1 inputs are not available,
the Company engages third party qualified valuers to
perform the valuation. The Management works closely with
the qualified external valuers to establish the appropriate
valuation techniques and inputs to the model.

Information about valuation techniques and inputs used
in determining the fair value of various assets is disclosed
in Note 50.

Litigations

From time to time, the Company is subject to legal
proceedings the ultimate outcome of each being always
subject to many uncertainties inherent in litigation. A
provision for litigation is made when it is considered
probable that a payment will be made, and the amount
of the loss can be reasonably estimated. Significant
judgement is made when evaluating, among other
factors, the probability of unfavourable outcome and the
ability to make a reasonable estimate of the amount of
potential loss. Litigation provisions are reviewed at each
Balance Sheet date and revisions made for the changes
in facts and circumstances. Provision for litigations and
contingent liabilities are disclosed in Note 46 (C).

Defined Benefit Plans

The cost of the defined benefit plans and the present value
of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. An

actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate,
future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive
to changes in these assumptions. All assumptions are
reviewed at each reporting date.

The calculation is most sensitive to changes in the
discount rate. In determining the appropriate discount
rate, the management considers the interest rates of
government bonds where remaining maturity of such
bond correspond to expected term of defined benefit
obligation.

The mortality rate is based on publicly available mortality
tables. Those mortality tables tend to change only at
interval in response to demographic changes. Future
salary increases and gratuity increases are based on
expected future inflation rates.

Further details about defined benefits plans are disclosed
in Note 47.

Useful Lives of Property, Plant and Equipment

The Company has estimated useful life of each class of
assets based on the nature of assets, the estimated usage
of the asset, the operating condition of the asset, past
history of replacement, anticipated technological changes,
etc. The Company reviews the useful life of property, plant
and equipment as at the end of each reporting period.
This reassessment may result in change in depreciation
and amortisation expense in future periods.

Warranty Provisions

The Company provides warranties for its products,
undertaking to repair or replace the product that fail
to perform satisfactory during the warranty period.
Provision made at the year-end represents the amount of
expected cost of meeting such obligations of rectification
/ replacement which is based on the historical warranty
claim information as well as recent trends that might
suggest that past cost information may differ from
future claims. Factors that could impact the estimated
claim information include the success of the Company's
productivity and quality initiatives. Provision towards
warranty is disclosed in Note 35.